Habib, Michel A.; Ljungqvist, Alexander - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003
We provide a direct estimate of the magnitude of agency costs in U.S. publicly-held firms. Using a sample of 1,307 firms in 1992-1997, we compute an explicit performance benchmark that compares a firms actual Tobins Q to the Q∗ of a hypothetical fully-efficient firm having the same...